Litecoin has erased the recent gains of more than 6% with a sharp decline in excess of 5%. As mentioned in my previous analysis Sideways Action, traders utilized the rise to create bearish trades on Litecoin which has seen the price drop down to $3.676.
While the price looks to consolidate, I think we may see a good downward action by the end of this week. Why do I think so? Read on below to know the technical considerations which compel me to arrive at this conclusion.
Litecoin Chart Structure – The daily LTC-USD price chart above clearly implies that the marked resistance is proving to be a tough hurdle for the bulls to cross. The chart structure remains that of a lower top, lower bottom and a new low may well be on the way.
Moving Average Convergence Divergence – MACD has declined further to touch 0.0301 while the Signal Line has depreciated to 0.2605. The Histogram sustains in the sub-zero region with a value of -0.2303.
Momentum – The Momentum reading has snapped the two-day winning streak, trimming the recent gains as it falls to -1.5618 from